NEW DELHI: Competition Commission of India has approved Tatas' proposal to acquire up to 64.3 per cent stake in BigBasket, a deal that will provide the diversified group a strong foothold in the fast-growing online grocery market.
Under the deal, Tata Digital Ltd (TDL) will purchase up to 64.3 per cent of the total share capital of Supermarket Grocery Supplies Pvt Ltd (SGS) as well as SGS sole control over Innovative Retail Concepts Pvt Ltd.
SGS is into B2B (business-to-business) sales through the portal business.bigbasket.com.
Innovative Retail Concepts Pvt Ltd (IRC) is engaged in B2C (business-to-consumer) sales through www.bigbasket.com and related mobile applications.
A wholly-owned subsidiary of Tata Sons Pvt Ltd, TDL provides technology services related to identity and access management, loyalty programmes, offers and payments.
An official release on Thursday said Competition Commission of India (CCI) has approved the proposed deal of Tata group acquiring up to 64.3 per cent stake in Bigbasket.
The deal involves TDL buying 64.3 per cent of the total share capital of SGS (on a fully diluted basis) through a combination of primary and secondary acquisitions, in one or more series of steps.
This is the first transaction.
"It is stated that subsequently, through a separate transaction, SGS may acquire sole control over Innovative Retail Concepts Pvt Ltd (IRC) (transaction 2).
Transaction 1 and Transaction 2 are collectively referred to as the proposed combination.
"The proposed combination will result in the acquisition by TDL of majority stake of and control over SGS," the release said.
Founded in 2011, BigBasket operates in 25 Indian cities.
It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.
Deals beyond a certain threshold require approval from CCI.